Corn futures rallied 6 cents yesterday after WASDE surprised the market by increasing corn exports by 175 million bushels and corn use for ethanol by 50 million bushels. Despite export shipments being 24 percent behind last year, USDA sees 2017/18 exports being up 8 percent from last season. Export pace would have to remain quite strong to reach the new target. The market’s reaction was modest considering how bullish the report was. This might signal that the market could stabilize in the short term before entering a period of high volatility during planting season.
U.S. corn ending stocks
Source: USDA (WASDE)
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